LONDON NOT YET REASBUEED

Southland Times, Issue 22934, 6 July 1936, Page 7

LONDON NOT YET REASBUEED

N.Z. FINANCE MR NASH’S STATEMENT WELCOMED “UNTIMELY INCIDENT” (United Press Assn.—Telegraph Copyright.) (Rec. 5.5 p.m.) London, July 3. New Zealand stocks are steadier, but according to the City editor of The Times the disturbing effects of the statement made by the Prime Minister of New Zealand (Mr M. J. Savage) have not yet disappeared. Accordingly the City welcomed the statement of the New Zealand Minister of Finance (Mr W. Nash) through the High Commissioner (Sir James Parr), denying that default or repudiation is contemplated and explaining that Mr Savage expressed the idea that while he and Mr Nash were in London the opportunity would be taken to ascertain by discussion what could be accomplished by conversion and consolidation of the public debt. The statement also explains New Zealand’s sound financial position. The Times adds: “The statement should go' a long way to restore the confidence of a great number of investors who have always shown a desire to invest in New Zealand stocks, which the Dominion must maintain in order to convert on most favourable terms. Such operations, however, must be governed by the terms of the various issues. It is possible that Mr Nash will find some considerations surrounding the question of modifying existing contracts not yet fully realized.” The City editor of The Daily Telegraph hopes that the unfortunate and untimely incident will soon be closed, as a call is due on Julj’ 31 on the New Zealand loan advantageously floated on April 30. It is hoped that the affair will now be relegated to the wellpopulated limbo of political indiscretions.

The Daily Mail hopes that nothing further will be done to impair New Zealand’s credit.